The response from New Jersey's congressional delegation is sharply divided, with all Democrats opposing the bill and Republicans generally supporting it, although some express reservations about the cuts to Medicaid.

As of mid-May 2025, 11 components of the bill have successfully passed through House committees and are currently being consolidated by the House Budget Committee.

The legislation also proposes a one-time fee of $1 million for companies exporting natural gas to expedite their requests, alongside a ten-year moratorium on state regulations concerning artificial intelligence.

Additionally, the bill would raise New Jersey's cap on state and local tax deductions (SALT) from $10,000 to $30,000, although this change may not fully satisfy some Republicans from high-tax states.

Republicans are pushing forward a major piece of legislation that proposes extensive cuts to federal programs and significant changes to the tax code, which could have lasting effects on American society.

This bill includes trillions of dollars in cuts that will impact health care, food assistance, education, climate initiatives, housing, and social services.

According to the Congressional Budget Office, around 8.6 million individuals could lose Medicaid coverage, while an additional 5.5 million may be affected under the Affordable Care Act due to the proposed funding reductions.

Among the changes, the legislation introduces work requirements for Medicaid recipients aged 19 to 64, mandating them to engage in work, study, or volunteer activities for at least 80 hours each month to maintain their coverage.

The bill also proposes significant alterations to the Supplemental Nutrition Assistance Program (SNAP), which would require states with a payment error rate exceeding 10% to cover 25% of benefits, a measure that could particularly impact New Jersey, where the error rate stands at 35.7%.

In a move to reshape energy policy, the legislation rescinds several climate and clean energy tax incentives established during the Biden administration, including vital support for the nuclear energy sector, while adding new fees for electric and hybrid vehicle registrations.

Private colleges would face a new endowment tax ranging from 1.4% to 21%, depending on the size of their endowments, as part of the bill's funding strategy.

While the bill aims to expand the child tax credit to $2,500 and increase the standard deduction for both single and joint filers, these enhancements are set to expire at the end of 2028.